Labour Leader Warns Thousands Face Layoffs, Manpower Minister Responds

Manpower Minister (Menaker) Yassierli has addressed the potential for further layoffs (PHK) at several companies, following warnings from labour representatives that four firms are planning job cuts. Yassierli stated that his ministry will continue to monitor the potential for layoffs going forward, including through the mediation process with mediators. “We continue to monitor. So whenever there is an issue, the process starts internally within the company, then comes to us,” he told reporters at the Coordinating Ministry for Economic Affairs on Monday (22/6/2026). The ministry will also deploy mediators if bipartite negotiations between labour unions and company representatives fail to reach a resolution. “Some we will push to resolve bipartitely, and for others we will send in our mediators. The point is we continue to monitor,” he explained. Yassierli added that the results of this monitoring will be communicated further. “We monitor everything, we will provide updates later,” he said. Earlier, Said Iqbal, President of the Confederation of Indonesian Workers’ Unions (KSPI) and President of the Labour Party who also serves as Special Advisor to the President on Manpower and Labour Welfare, stated that the government and labour unions are undertaking mitigation steps to prevent a wave of layoffs amid threats of global economic uncertainty caused by the war involving the United States, Israel, and Iran. Said Iqbal revealed that field visits in East Java, West Java, and Jakarta showed real impacts from the prolonged war. “The findings are indeed true. As a result of the war between Iran and America and Israel, which has caused global economic uncertainty, it is greatly affecting export-oriented companies and companies whose raw materials come from imports. Demand for goods from abroad has decreased, causing company production to also decline,” he said in a written statement quoted on Monday (22/6/2026). Said Iqbal identified four companies at risk of shutting down operations and laying off many workers: PT Pakerin in Mojokerto, East Java, with 2,500 workers potentially affected; PT Fengtai in Bandung Regency, West Java, with 4,000 workers at risk; and PT J and PT A in Pasuruan, East Java, where thousands of workers are potentially facing layoffs.